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Insurance Corporation Employees’ Union (ICEU) threatened to go on nation-wide strike protesting against the government’s proposal to increase foreign direct investments in insurance sector to 49 per cent from present 26 per cent.
Increase in FDI limit in insurance sector to 49% from 26% will likely provide exit  opportunities for promoters. Given the modest growth in business for life  insurance sector and weak profitability of non-life, and that insurers have  significantly high solvency margins, contribution of incremental FDI to expansion  will be limited. If all promoters decide to sell 23% stake to foreign players the  potential inflows can be around USD 3.5bn. But a realistic estimate could be much lower at USD 0.4-0.8bn. Read more
Some major highlights of the Insurance Amendment Bill are as below:-
1. FDI has been hiked to 49% which will allow foreign companies to increase their stake in Indian joint venture. It will also help the Indian partner to raise money to beef up operations